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[The following is a partial transcript of this episode of The Scott Alan Turner Show. Listen to the full episode to hear this story, listener questions, money hacks, and inspiring stories of people that are changing their financial lives. Subscribe to the free podcast on iTunes or Google Play]
In This Episode
- Burger King launches $5 coffee service.
- A radio host busted for a $20M Ponzi scam
- Kaitlyn shares what her dad taught her about money
- Be wary of former washed-up celebrities pitching financial products
- Is a second mortgage better than PMI (Dylan, Baton Rouge, LA)
- What is considered a ‘low’ expense ratio (Carter, Warner Robbins, Georgia)
- How can I get my 26-year-old on the envelope system (Daisy, Delaware)
- Help me understand my 403(b) plan (Mason, Las Vegas, Nevada)
- Should we borrow $20,000 to adopt a child (Liam, WA)
- Should I be pushing my kids to go to college (Bethany, Orlando, FL)
- Is it ok to get a company match on 401(k) when paying off debt (Pam, Atlantic City, New Jersey)
- I inherited some stock and can’t decide if I should sell it (Phoebe, Topeka, Kansas)
There are lots of money myths we’ve all believed. But most people have fallen for some of these money saving myths too.
All of the beet juice extract, pomegranate oil, essential spinach people are consuming must be working. The latest study I read said half of people age 55 have nothing saved for retirement. It used to be age 45. People are either spending more for an extra 10 years. Or living longer. It’s gotta be the beet juice.
Consider if people sit back and do nothing. They are guaranteed to have no security, peace of mind, and financial freedom.
There are lots of saving myths. You already know many of these:
- I don’t know if I’ll live that long
- Social Insecurity will cover most expenses
- If Social Insecurity isn’t going to be there, I’ll collect early
- I’ll save later
- I’ll spend less as I get older
- I have money invested and don’t need to worry about inflation
- I’ve saved $1,000,000, and some financial pied piper told me I could withdraw out 8% a year to live on
Yeah right. That’s a spending myth. Listen to me – get used to saying ‘Do you want fries with that’ if someone follows that advice.
As people age their tune starts to change. Realizing they have waited too long, the plans become:
- My kids will take care of me
- I’ll work till I’m dead (or can’t, which is worse)
- I just need to find some of those 12% Fake Math investments and hit a home run.
I’ll stop drinking the beet juice extract and eat donuts so I don’t have to stick around as long. Which is not a bad plan. But I don’t think those people will feel very good.
Hey, if someone is in the stage of life where it’s day-to-day survival, or digging out of debt, fear not. You focus on those things. I would tell that person, don’t waste your energy on things beyond your control. Focus on where you are, with an eye towards where you want to be going. Keep moving forward. Don’t get stuck in a rut. Be in it to win it. Because if somebody quits, it’s very hard to win.
Consider the average family making $50,000 a year. One a million dollars will pass through their hands in just 2 decades. Ok the imperial federal government is going to want their fair share. Politicians have to buy high school band uniforms. And $1M abstract art of an inside out pumpkin painted blue to put in front of the post office. But all that is clearly spelled out in the constitution. We all pay for that. There’s nothing we can do.
Here’s how to make the most out of your money in good times AND bad
- Buy used cars
- Buy off-brand names or things on sale
- Buy the basics – clothing
- DIY – repairs + chores
- Spend less on food
- Take advantage of company benefits
- Watch waste – don’t let the faucets drip. Save $2,400 a year by eating leftovers and not buying bags of spinach which rot and go in the trash. Who around here has done that?
Do you know what those are all money characteristics of? Millionaires, and future millionaires. Maybe like you’re trying to become. Becoming a financial rock star. I know you get excited about that. I get excited for you. It’s one of the reasons I started this show. To correct the bad advice out there. So you can reach your financial goals faster and keep more of your hard earned money.
Many people are heading towards being terribly unprepared, living a terrible quality of life, and struggle. Many have already arrived. I believe it’s never too late – unless someone gives up. And I believe that because I’ve heard and read the many stories. Stories of the 30-year old millionaires. 40-year old millionaire. 50-year old millionaires. 60-year old millionaires. The stories we’ve had on the show of people making life change starting at later stages.
Here’s just one. In our 500th episode – 53-year-old Jen Sincero went from making $28,000 a year, broke, with zero savings eight years ago to being a multi-millionaire today. Not too shabby, right?
What you believe is what leads you. Many people believe, have a plan, and are making smart choices. That leads to being prepared, have an awesome quality of life, and peace of mind. Many have already arrived.
That’s the secret sauces.
- Have a plan
- Make smart choices
The new saving truths are:
- I’m probably going to live that long if a salad doesn’t kill me, and I’ll be financially fine
- Social Insecurity is going to be my bonus money.
- I’ll save now and give away my wealth later. Maybe on high school band uniforms.
- I’ll spend more as I get older and upgrade to first class
- I don’t care what inflation does
- I’ll live with my kids or my parents will live with me because of love, not lack of preparation.
- I’ll work till I’m dead because I love what I do
- I’m a genius and I understand how to invest
Think about this:
- Do you believe?
- Have you made a plan?
- Are you marking smart choices?
Of course you are. You’re listening to the Scott Alan Turner Show. You’re a #Moneyac.
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