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Untucked Episode 96

Untucked Episode 96

Click here to listen to our Coach’s Corner discussion about parents financially supporting their adult children.

Click here to listen to our entire episode which can also be found on Apple Podcasts, Spotify, or Google Play. 

Meghan Tait: [00:00:00] Um, today we’re gonna talk about an article recently, um, featured in the Wall Street Journal, written by Julia Carpenter. The article is called Well Into Adulthood and Still Getting Money from their Parents. Um, I took this like summary right from the article. Parental support is continuing later in life because younger people now take longer to reach many adult milestones, and getting there is more expensive than it has.

Been for past generations, economists and researchers have said, so. Julia’s article explores parents helping their adult children financially, and that’s what we’ll spend some time on today.

Jeff Mastronardo: What do we consider adult children? What age? 1823. 23,

Mike Traynor: I think. Well, I was gonna say 21 or 22

Jeff Mastronardo: plus. Yeah.

Meghan Tait: Okay. Like I, I view, at least I view the way that this article framed it as adult working children.

Jeff Mastronardo: Yeah. Working or trying to find work. Or trying

Meghan Tait: to find work. Yes. So early twenties. Okay. [00:01:00] And the article focused on what they referred to as adult milestones, having their own children buying their own homes, um, supporting their own kind of month-to-month needs, or not being able to do so with the income that they were making.

Jeff Mastronardo: So what do we kind of see? We, we see all the above, right? Like we see parents that help their adult children on a monthly basis with a stipend, and I mean, adult children, like in their forties Mm-Hmm mm-Hmm. Like twenties through forties. mm-Hmm. We see clients helping adult children with milestones.

Mm-Hmm. I’m gonna give them 10, 20, 30, 50 grand to buy a house. Mm-Hmm mm-Hmm. And we see them also just non-milestone. Like, Hey, here’s 10 grand. Here’s five grand at Christmas. Yes. Here’s 15,000. Just ’cause I want to give it to you.

Meghan Tait: Yes. And I would argue the majority of those decisions are made because the parents are in a position to be able to do it.

[00:02:00] Not often coming from a place of need from the kids, kids asking for

Jeff Mastronardo: it. Yes. Hey, I need help. Yes. Will you please help

Meghan Tait: me? Which we know that exists, obviously. Um, it’s just not something maybe we. Experience as much

Mike Traynor: you have. You’re in that position. Yeah. Yourself. You have a adult. Yeah.

Jeff Mastronardo: Child. And I’m completely torn.

I have no idea what I’m doing. Uh, I don’t know if I’m an enabler. I don’t know if I’m supporting. I don’t know if, I’m certainly not like being the, like, bad cop, that’s for sure. Um, and I don’t know what you’re supposed to do. Right. Like my kid lives at home. She had a job that was miserable. Quit it kind of.

Yeah. Not the way you should have. Like she should have gotten another job then quit her job. But it was so bad. And like, I’ll use the term like abusive, like I was like, you just gotta get outta that place. Yeah. And then you could find a job waiting table somewhere that’s taken a little longer than we’d like it [00:03:00] to.

Um, so I just don’t know like, what’s the cutoff? Like, when are you like, you need to be out of the house, you need to be in your own apartment. ’cause you don’t wanna force your kid into a. Financially stressful situation, but you can’t let your kid just like sit at home and eat your Eggos for the next.

Like, yes, I eat Eggos every morning. You can’t let your kid just eat your food and be comfortable. And we’ve Melissa and I have done a horrible job. What I mean is a very good job of making our home very comfortable. So like nobody wants

Mike Traynor: to leave. Yeah, I mean, I think like most things I would say it’s situational.

And, and there’s not a black-and-white answer, in my opinion. It just never would be you. And then you get down to when you have multiple adult children, one maybe needs no help and one maybe needs a lot of help. So you handle that differently. You just have to, right. Um,

Jeff Mastronardo: if your [00:04:00] kids, if your kid’s working, this is, this is the way I, how I, if your kid’s working and they’re a productive member of society, you have way more leeway.

With me, like, yeah, let’s stay here until you have enough, and your budget and expense ratio is enough where you can get out on your own and, and not have to like really struggle too much. Now I’ll just pull, pull a number like that. I’ll pull a number outta the, outta the air. Like that can’t be till you’re 30 and like 28 is probably when I start like.

Scratching my head like, all right, when the heck are you gonna get outta here?

Meghan Tait: What if she wants to buy a house in New York? Like, what if that’s her goal? I mean, twenty-eight, she’s not gonna be able to do

Jeff Mastronardo: that. Then you have to save up here until you’re twenty-eight. Go get yourself an apartment in New York or in Hoboken, or right, wherever.

And then it’s [00:05:00] just gonna take you a little longer to save up because now you have to like. You have the expense of an

Meghan Tait: apartment for a, they rent too. Yeah. Yeah, yeah. I think the element, like I, I, I agree with you, Mike, that like, it’s very situational. I feel like it’s just so important to have the conversation and to be on the record about.

Expectations from both sides to whether or not you’re job-seeking or you are responsibly spending and saving your money. Um, you know, and, and timelines. I, I, I feel like creating them can be a little bit of a slippery slope, right? It can maybe add undue pressure, can create anxiety around an age, approaching an age that maybe isn’t.

It isn’t totally necessary. A again, I, that’s situation by situation.

Jeff Mastronardo: Uh, communication is like step one. Yeah. And we screwed that up. Like we never had the sit down. It’s so crazy that we’re having this pod now because [00:06:00] Melissa and I talked about this morning and we reached out to Kayla today and said, Hey.

Why don’t we, ’cause she’s in between jobs. She’s looking for a job. We’re like, we need to sit down this, this weekend. If, if we all can to discuss like, what’s your plan? Like how long do you want to be here in living at home? What does your budget look like? What are your goals? What are you saving up for?

What do you want your career to look like? Does that mean you have to go back to school? Do you want a career? I don’t know if you want a career and like just have that discussion. We haven’t had it. Mm-Hmm. And, and we never had it. So that was a mistake. We probably should have had that a year and a half ago.

Um, but she’s twenty-four, we’re, we’re gonna have it now. Everybody’s on the same page to have, and I think we’re all gonna feel a whole lot better after we have it. She’s gonna feel better ’cause she finally has direction. We feel better because we understand her expectations and she knows our expectations.[00:07:00]

And I think as long as you’re helping your kids make good financial decisions, that’s good.

Mike Traynor: Like I think I can, I can definitely see the helping with the down payment as becoming, as being way more of a, um, an obvious and important thing to do, given that all the other things are there. You know,

Jeff Mastronardo: the stars would have to align for me for that one.

Yeah. Yeah. Like if a kid has a house that they wanna buy and the down payment’s 50 grand and they have $5,000 saved up, I’m not helping you.

Mike Traynor: But I think part of the thing there is that the article mentions it that the price of real estate now, relatively speaking, mm-hmm. Is outrageous. So. The down payment that would’ve been required 30 years ago is it’s, it’s not even attainable,

Jeff Mastronardo: but if you haven’t shown the discipline and the financial ability to accumulate at least half of the down payment, why would I help you buy a house?

You’re probably just [00:08:00] gonna make more financial mistakes and you’re probably gonna lose the house or need more financial support from me, which I’m not gonna do. I,

Meghan Tait: I, I think that’s where conversations are important and expectations are, are required. I mean. I, I, obviously, I don’t have kids, but like when we think about that adulthood timeframe, it’s like, it’s weddings, it’s houses, it’s, you know, again, kids of their own.

And I think there are a lot of ways in which help can be used, of course. Um, but maybe. With you and your kids like identifying, you said it, the goals or the priorities of your kid and they’re gonna be different for everybody. And then I think it’s like how financially solvent are mom and dad like. Can they afford to do these things Again, we deal in a space and place where most of the time the affordability for mom and dad is not a huge concern, but that’s not [00:09:00] the norm.

I mean, the life being more expensive isn’t just impacting young adults. Yeah. Life’s more expensive for everybody. Now. Mom and dad might not be trying to buy a home or trying to have a wedding or have their own kids, so I understand that, but like. Parents deciding to help with no guardrails for themselves is like the absolute worst thing they could do for themselves and their kids.

Right?

Jeff Mastronardo: Yeah. Yeah. I mean, I have a few clients where I’ve said like, you know, it’s, it’s a, it’s a single client, you know, husband or wife, predeceased. They have one child and they have more money than they need. Like, you can help your kid as much as you want. Yeah. Like you’re. You are not like filthy rich, but you’re, you’re never gonna spend all this money.

You, they’re gonna get it anyway if you want to help them. Sure. No guardrails. You’re, you’re totally fine. But I think in, in 90% of the cases, yeah, there have to be guardrails. ’cause the parents have [00:10:00] enough for themselves, but not enough for everybody else. Right. It’s interest, it’s, it’s, it’s wild how unique every situation is.

And there is no. Yeah. Okay. Here’s the rule of thumb. This is how you do it. You know, you, once your kids hit twenty-eight, you kick ’em out like it’s expensive and they don’t make a lot of money. Mm-Hmm. Uh, I, I, you know, kudos to the kid that graduates college and is immediately in an. In an apartment on their own supporting themselves.

But that’s, I don’t think that’s the norm anymore.

Mike Traynor: Yeah, I mean, I have a friend who, whose son just graduated a year ago, took a job in outta state and the job he learned, the job, he rented an apartment, spent everything he was making on that and just living. And then, you know, this particular job, I guess, has afforded him the ability to work remotely.

So he just announced he’s coming home and living at home to save the rent. While he continues to work and the parents [00:11:00] are not happy Yeah. About it at all. So, um, but I get it, like he’s not saving any money by spending, you know, $1,800 a month on a rent, wherever, wherever it is. I’m making up a number. But like he’s, he’s spending every, he’s not saving anything where he is.

And that’s a scenario where, I don’t know, I would, I would say, yeah, like a year. Two, whatever. I don’t know, maybe, but just, just bank what you can and

Jeff Mastronardo: then figure it out. There’s other options, man. You don’t have to, you don’t have to get an apartment by yourself, right? Yeah. You get an apartment with two other people, you make it affordable, but you can’t, like, I just don’t, like if your kid’s sitting on your couch, you eating Cheetos, like you need to crack them into shape to like get a job or get out.

And I, and like, I’m sorry, like that’s, if that creates financial stress for you, I’m sorry, but you just can’t like. What’s the word that people, you can’t free load. Yeah. You can’t be like a freeloader if they’re busting their butt and they’re working and it’s just expensive and [00:12:00] Yeah. That’s kind of where I’ve, this Yeah.

You help them accumulate and then figure out, okay, you wanna move out? Well, yeah. A, a 2000 apartment isn’t in your range, but I don’t want you living in a $200 a month apartment, so let’s figure out, find two of your buddies and find a, find a place, because I think that’s gonna help them grow, right.

Keeping them at home where they’re comfortable. It isn’t getting them out with roommates, that experience living with other people having to like wash the dishes. Mm-Hmm. Because your roommates are gonna give you shit if you don’t like, that’s. All growth for them.

Meghan Tait: And it, it, it affords them growth financially too.

’cause it forces a level of responsibility you hope. And obviously it could go the other way where poor habits are created, but like you hope that maybe with enough of a cushion a couple of years saved and then like a, a budget or a framework in which they can afford to [00:13:00] live that it does create maybe more sound.

Financial decision making moving forward.

Jeff Mastronardo: I mean, we’ve all done it, right? All three of us have moved out. Yeah, it sucked. It was financially stressful, at least for me. I

Meghan Tait: lived with two people I met on Craigslist. What’s Craigslist?

Jeff Mastronardo: I’m kidding. It’s tough. I’m not saying it’s not tough, but there’s ways that you can alleviate the stress.

Level a little bit and make it possible for you to move

Meghan Tait: out. Like at the end of the day, if people have parents who are willing and able to help if it’s done so responsibly and well intended.

Jeff Mastronardo: Yeah, I think and, and uh, maybe I’ll wrap with this. I think the one thing that we have to do a good job, a better job of doing, and I’ll throw my wife under the bus,

Meghan Tait: we being

Jeff Mastronardo: parents.

Parents, yeah. We have to stop looking about what we did. Like [00:14:00] Melissa always says, and this is not specifically related to like older kids, like to our younger generation, I agree with you, but she’s always like, man, like when my mom was at work and I was at home, like I started dinner and I clean that.

Like, okay, well you’re, you’re a better person, right? And you’re maybe a harder worker, but like, we can’t take what we did and and expect our children to do the same damn thing, especially when we have made their lives super comfortable.

Mike Traynor: Yeah, I think that’s a great point.

Jeff Mastronardo: Okay. All right.

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Untucked Episode 95

Coach’s Corner – Today we’re going to talk a little bit about budgets and bill paying. Uh, we get a lot of questions about best practices when it comes to creating and servicing a budget and different bill paying strategies.

So today we wanted to talk about some of the ways we’ve seen budgeting, uh, maybe work well, some of the ways it maybe hasn’t worked as well, and then, um, maybe some of our kind of personal tactics. What are the most effective ways to kind of manage a budget? Like, people do, [00:15:00] like, old school, like, people did, like, envelopes.

Mm hmm. Envelopes for, like, utilities, for cars, for vacations, for Christmas. Mm hmm. With, like, literal cash. Cash envelopes, yeah. We can all agree that’s probably not the best way to go about it. I mean, it works, but, like, nobody operates in cash anymore. Yeah, and you can, you can Mimic that now with different online tools, right?

Bucketing your bank account, for example, in digital envelopes. But yes, I think the cash piece of it is silly. That’s my goofy way of doing it. Like, I record entries in my, like, electronic My digital checkbook that I run of, like, Roth IRA contribution. Which I’m not making until January of 2025. But, you know, 600 a month.

So it brings my Checking account balance to a negative because I have all these pockets of things that I’m like [00:16:00] putting money aside for Not outside of my checking account but outside of my checking account balance digitally, which makes probably no sense You’ve described to me how you operate your And I’ve never, I don’t think, fully grasped it.

Well, let me try to explain it to you again. Like, I have to pay a life insurance premium of 3, 000 every September. So every month, I put, I have an entry for 250 this month for that life insurance premium. Next month, I change that from 250 to 500. The next month, I change it to 750. So it did it as if it left my account now, it didn’t leave my account right still there, right?

But my system says it left the account. Yeah, I’ve already counted it as out. Yeah, it’s not money. I can use It’s not money. I can spend sure where that kind of [00:17:00] strategy stinks right now is I’m probably losing a couple bucks in interest where I could have that money somewhere else earning and outside of my checking Yeah, I think for me.

I think the best way to run a budget is You have your fixed expenses, which all get debited in one form or fashion, whether it be a check, a debit, an ACH payment. All your fixed expenses get debited from a checking account, monthly. Again, I don’t care how you do it, if you write checks or if you set up automatic payments.

And then everything else you do, you charge through a credit card and pay off every month. And then all of that is all categorized for you for your review at the end of the year. Right, so what are the advantages of a budget? It’s to understand where your money is going. So when you say budget, I’m a little confused.

Are we talking about tracking your expenses or a budget, which to me kind of means you [00:18:00] have figured out how much you’re going to allocate towards various categories of spending in the future. And then you kind of try to stick to that or, you know what I mean? I feel like that’s different. So no, it’s the same.

Oh. Okay, sorry, but no tracking what you spend is not a budget to me. Well, I think tracking what you spend gives you the Ammunition to then create the budget right like understanding where the money is going so you can say well I’m spending too much money going out to eat. Yeah, or I’m not spending enough money on something else So it’s probably saying same.

Yeah one leading to the other doing it my way, which is the best way Allows us to say like right here’s all my fixed expenses And then I can spend, for my lifestyle, 4, 000 a month on my credit card and then pay it off at the month. That, if I [00:19:00] exceed that 4, 000, then I have a system that I can go to and figure out why.

Why I exceeded the 4, 000. Because it’ll break it all down. Wah wah, gas, food, booze, out to dinner, clothes. Hockey. Hockey. Hockey. Hockey. So you tie it to a credit card limit. Like you tie it to how much lands on your credit card? I personally set myself the limit, right? Like if I make 10, 000 a month, fixed expenses are 5, 000, uh, I want to save 2, 000 in my 401k, well then the remaining 3, 000 is what I can use for my lifestyle.

And I’ll charge it all on a credit card. And then the theory is to pay it off at the end of the month. If that exceeds, if it’s 3, 500 one month, then I can go into that system and see why. Seems pretty straightforward, right? How do you do it? Does anybody do you book a vacation and put it on your credit card, that’s a one time, that’s a kind of a one time significant [00:20:00] expense that is outside of your normal 4, 000 in your example.

That is a separate budgeting technique. Now we’re getting to it. That’s when you speak to your partner. Uh, what’s our vacation plan this year? And then he or she says, okay, well for that one, I’m going to budget 500 bucks a month. That’s going to come out of like my spending limit. And it’s going to go into this account over here so that we can pay for the rental at the Jersey Shore when that comes up in June.

Kind of similar strategy, but it just has to be planned for. We can’t just say, oh, let’s take a vacation and then just book an Airbnb for three grand and then not be able to do anything that month. So, okay, I get it. You do it differently? It sounds like you do it differently. Yeah. Yeah. I don’t think I’m going to like your way.

But, but before that, so people that use debit cards, so I don’t use a debit card ever for anything. Yeah. Every single thing that can go on the credit card goes on the credit card. Something that wouldn’t would be [00:21:00] somewhere where they’re going to charge me 3 percent for something that’s a big. God, I hate it, dude.

Yeah. No, it’s not just if it’s big. Yeah. Yeah. No, you’re right. It pretty much a hockey registration tryouts for a hundred dollars. That’s a, they charge 4.9%. Yeah, that’s a good example. Jeez. Which I ate. So you just pay that ? No, I, well, I put it on my card. Oh. I paid the extra five bucks to put it on my credit card.

Yeah. Because I got points for it. . Well, that’s the thing. I mean, the points are I got 1% in points and paid 5% in fee. . No, but no, you’re right. Stupid. You’re right. You do. You get one or maybe two. But um, for the stuff that is not. There is no surcharge for it. It’s like, why would you not put every single thing on a credit card that you could?

If you don’t have Do the people that use debit cards just know that they have no self control? Yes. And they have to put it on a debit card because they know the money’s there and if they put it on the credit card, they’re not gonna, they’re gonna end up buying stuff that they can’t afford. Yeah. I think that’s a big part of it.

I think, and even if they don’t, if that’s never happened to them, I think they’ve been [00:22:00] Scared. They’ve been made to feel scared of using credit cards. Like, I think it’s completely psychological. Yeah. That’s it. I don’t know how, again with my system, I can’t use a debit card. Because I, I like schedule all the payments or I have things scheduled that come out of my checking account at different times of the month, right?

Car, 529 contributions, like all this stuff. So just looking at my balance on one day doesn’t give me an accurate balance. Sure. You’re right. I guess. So how can you use a debit? I mean, I guess if you have a 50, 000 buffer in your checking account, you can debit away. Yeah. You don’t need a 50, 000 buffer. No, but like, let’s say you have a 3, 000 buffer, it can easily get debited away.

That’s why I don’t like auto pay. So I’m, I’m a little bit of a control freak in that sense. You? I do limited auto pay stuff because. Like when I [00:23:00] get utility bills or anything that comes in that’s a regular monthly thing, I, I like manually make the payment. I do online bill pay, but I don’t set it up to automatically debit for that reason.

Because I want to, I don’t want to be like, Oh shit, like I forgot about that auto pay for my homeowner’s insurance or you know, whatever it is. And then like forgot about it. Right. And then didn’t have enough like balance a 75. 89 charge for T Mobile. Yeah. Yeah, I hear you. Yeah. I manually, like, e pay everything from TD Bank.

For the most part. Yeah. I’m with you. And then I have, like, probably half I do that manually, the other half, like, like my mortgage I do manually. The T Mobile just gets debited from the account and I just record it every, every, um, the 529s get pulled from Vanguard, from my bank account, I just get recorded.

So it’s just I don’t know how you would debit unless you had a pretty significant buffer [00:24:00] because I don’t think anybody’s like balancing their checkbook No, no those days are over I mean, I do like when I was like do it every month out of college and stuff because I was kind of like told This is what you were told today.

Yeah, and then after a while you’re like, why am I what am I I do it every month? Why and like the purpose being? Yeah, I mean it’s a legit question. To make sure that like I have everything and I know how much is in my account. Like I know what came in and I know what went out and it’s all accurate. And I didn’t miss anything.

Yeah. I, I’ve never No, no, and I, I understand that like the, the cash flow is a little bit different. I just, in, in any case, the, the balancing of the checkbook, the actual act, when you have, with the click of a couple buttons, the ability to scan transactions. It just, it doesn’t make sense to me. I have a lot more [00:25:00] transactions than you.

Yeah, okay. So maybe that makes it a little easier if you just scan the four transactions that you have in each one. Alright, alright. I’m starting to hate again, I don’t know why. So back to your comment, Meg, um, you mentioned that, or maybe it was Jeff, that some people like have this fear of credit, using credit cards.

It’s funny because I made, Caroline and Will made them. I did, I made them get credit cards. And I’ve said just when you spend, don’t use a debit card, use a credit card, and then set up auto pay for the balance at the end of the month to link it to your thing and pay it off every month. Um, cause you’ll, you’ll build credit and then also, you know, you’ll, you’ll get 3 worth of points at the end of the month or whatever.

But, um, but they were the same way. Like they were like, I don’t, I’m, Caroline was like, I’m, I’m, I’m really scared to use a credit card. She was just like. You’re naturally reluctant. Yeah, do it. It’s weird. How many times have you had to go into their accounts and add money? [00:26:00] Like on short notice because their auto pay was gonna happen and there wasn’t enough not yet Nothing yet.

So my credit card is the only bill that’s not on autopay. So I’m the opposite of you like Uh, everything is autopay. If it’s auto payable. Yeah, I am. I don’t care what day of the month I would just me going in and manually paying a bill, uh, that’s would lead to me forgetting. Right. So what you’re describing, like your active balancing your checkbook to make sure nothing was forgotten.

Autopay gives me confidence that nothing will be forgotten. Now, could I get charged double what I’m supposed to be? Absolutely, would I notice? Probably not in a particularly timely manner. That’s another reason, I’ve busted many a vendor for trying to overcharge me for stuff, or you just, you’re like, wait, I’m on, I’m on like this plan, and I should, like that kind of stuff, you’re right.

Yes, so I definitely like try to pay attention, but it’s [00:27:00] not, there’s no like system in place to double check, so if I notice something that looks incorrect, I’ll figure out why it’s incorrect, but it could be like, So neither one of you understand the stress of like, putting all the debits in, putting all the deposits in, and then there’s, it’s off like 2.

96, and then having to go back and figure it out. No. Uh, uh, no. The going back and figuring it out part, that’s a waste of time. You would just click reconcile. Whatever. Yeah, whatever button you click. I don’t even know what that is. For 2. 90, that’s a rounding error. I mean, if it was 1, 000, I’d be like, all right, I messed something up.

My bank, so I have my checking account and then I have like a, they called a reserve and then they have like long term savings. So I have. My everything goes in and out of my checking my reserve I use as like my travel account So like [00:28:00] every time I get paid I put some money there So if I do want to book something on a whim and don’t want to add it to the credit card I have like a little bit of a buffer and then the long term one is just where I put like the tax money but because of that reserve Being like overdraft protection or whatever like balancing to the scent Doesn’t matter.

I have a buffer now. It’s not a 50, 000 buffer, but it would Theoretically cover me if I Venmoed somebody 500 bucks and didn’t mentally account for it or something Jeff where does your gambling account reside? within the app Just within the app. I make a deposit in the beginning of the year. I hopefully have winnings and to this point, like, we’ve never gone negative.

So I’ve been basically playing with house money. So I guess to get back to maybe something constructive, um, [00:29:00] Budgeting and understanding lifestyle is important because it allows us to, one, again, kind of fine tune month to month, are there opportunities to save more, are there opportunities to service debt differently or more effectively, and then it also allows us to project, right?

If I need to live off of, or if I’m living off of X today, well now I can do some rough math and figure out how much I should have saved by a point in time, maybe when I want to retire. So there’s value in this information. And I think we often find people who are like, Oh, should I go out to dinner one less time a week?

Or, you know, like making decisions around the budget that while they’re probably important and impactful, the broader conversation, in our opinion, should be like, again, how much we can save, right? And are we doing and spending in a way that Maximizes our saving, [00:30:00] savings opportunities, right? Yeah, and if you’re doing like the, if you don’t want to do the credit card thing that we do, then it’s like, I make 10 grand, have everything auto pay for your bank, 5 grand is that, it goes out, I put 2, 000 in my 401k, you know you have 3, 000, you can debit during the course of the month.

And you can’t go over that number. Right, and there are tools, you know, Mint is one of them. There’s other apps where you can load all of your lifestyle and spending information. It’ll help you with the categorization that we’re talking about our credit cards doing. So there are tools that can help compile the information.

But ultimately, like, the effectiveness of it is up to you. Yeah, I think one of the biggest, like, Mistakes people make is they don’t account for those like quarterly or annual ones and break them down monthly and set that aside. Right? You have to [00:31:00] do that. If you have a quarterly payment that’s due for whatever, you gotta take money each month and put a third of it into, like, aside.

I 100 percent agree with that. You have to kind of, it’s the way businesses account for their own expenses that are One time lump. Yep. They don’t it’s not an expense that quarter It’s it’s spread throughout the year and they account for it that way and that way you you recognize that it’s a It’s an expense that covers like the whole year’s worth of stuff and Jeff the way you do it is perfect because you’re Doing exactly that we have clients that don’t do it that way that are retired and they like live on a fixed budget And that screws them up and screws up their plan every year all the time It’s like yep.

All I all we need is five thousand bucks a month. We send it to them and then I get an email. Hey, um, you know that that auto and homeowners and uh, Insurance bill just came in. Can you send us six grand like? Six grand. That’s a big [00:32:00] number. Like, why don’t we just send you an extra 500 a month? Cause they just can’t, they’ve never done it that way and they can’t do it.

Yeah, I think that’s, that’s part of this too, right? Is like, people come to us and ask for advice. Um, with tracking expenses, or with building a budget, or sticking to a budget, and it’s like, whatever you’re gonna do, like, whatever is going to be most effective to you, um, and, and I would say most honest, because I think a lot of times people are, maybe intentionally so, or not intentionally so, kind of forgetful of expenses, and it leads to that.

These one off things that, aren’t actually one off. So in terms of building and compiling the information and sticking to it, it’s a matter of a system and that you’ll stick with. Um, and then again, hopefully promotes conscious spending with the ability to save. [00:33:00] Yeah, the one other thing I’ll say is, um, I think it’s so important for young people especially, especially, which is you paying yourself first.

So like Jeff, you mentioned your, your savings thing is, is there. So like when I started my first job out of college, I made 17 grand a year and so like 1922, it was a recession, but seriously, and, and, but at the time I put, I set up the automatic like 50 or 100 or 150, whatever it was a month to go directly into like some mutual funds.

Yeah. Right. So, and that, and that was just systematically set up from the get go. And I, that was going on for years and it ended up being huge because it provided number one, the habit of doing it. And number two, You know, it compounds. I mean, we talked about that separately. It’s just, it’s so important.

And I think that’s, um, something that that piece of advice I think is [00:34:00] critical for young people to whatever, however little it is just systematically set aside from your 401k contribution. You do that, you know, up to the match or whatever the company you’re working for, if there is a match, but aside from that, Even if it’s 25 bucks a month, do that and don’t touch, don’t touch it cause you’re, you’re, you don’t even think about it.

It’s gone. It’s at another, it’s, it’s, it’s not like landing in your bank account and then you have to do it. It’s gone. So I, I would, I would say that’s really important. No, I’m like that advice is good, man. I think that’s what holds most people back is when they think about, well, it’s only 25 a month.

That’s only 300 a year. Right, but it’s 300 that you save that year that you would otherwise would not have and it’s the habit. Yeah, because then the 25 You don’t even feel it and then when you get a raise like well, maybe I’ll make it 125 Yeah, I’ll make it 50 and then it starts to become something because it’s habitual now.