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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 / Listener Questions
- How am I doing on saving (Erin, LA)
- How do I move my old 401(k) (Juan)
- A beginner’s guide to IPOs (and why you should avoid them)
- We had to move quickly and it took some of our savings (Wren)
- Is there a faster way to pay down student loans (Paige)
- How do I setup and put money in an emergency fund (Emmanual, Uganda)
- Why a good night’s sleep (on a good mattress) is a good investment.
- Jen shared her emergency fund name to keep her inspired
- My wife will receive an inheritance and I don’t think she’ll want to pay down all of our debts with it (Bernie)
- Kanye West shows you can be stylish on a budget
- Are you being taken advantage of by people in suits?
Most people are excited the new economy is going to fix everything. Fix it! I’m excited we’re back streaming again.
Gallup release a poll last week showing 7/10 people believe they will be better off financially one year from now.
I love that most people are optimistic about the future. Hope is a good thing. I hope the Vulcan’s arrive in their space ship soon. I’m ready to visit the galaxy.
But it’s weird, because feelings and beliefs don’t match reality. It’s kinda like someone who thinks they eat healthy, but if they were to write down everything they ate for 30 days it’s usually a shocker. “Hmm, I didn’t realize I ate 97 donuts this month. But they were the small donuts, I think.”
Or the person who thinks they don’t have any money to save. But they have no idea what they spend money on because they don’t track it. You spent it on 97 donuts, bro, you just forgot to add them up.
- Student loan delinquencies are at an all-time high.
- Car payment’s being late are high.
- Consumers have records amount of personal debt from credit cards.
The good news is right now the economy is on fire, workers are making more money, and mortgage rates are incredibly low.
So if you’re making more on one end, and watching your spending on the other, that’s the Lady + Tramp Spaghetti Strategy. Going at your finances from both ends.
Because nobody can spend less than zero, and nobody can out-earn bad spending habits. It’s a balance.
I believe we should all be optimistic. But I think having realistic optimism is the recipe for success, and prevents personal financial disasters.
When you hear the surveys that reveal 50% of people don’t have $400 in cash for an emergency, but 7/10 people are very optimistic. Huh?
I’m optimistic I’ll stay in good health, but the reality is I go to the gym to help that happen. Believing I’ll live to age 120 requires a little work on my part to make that a reality.
- How about building up, building out, knocking down a wall. I used to watch This Old House on PBS every weekend and they did some amazing home renovations.
- How about getting a raise or a bonus? Commit to using it to pay down debt, build an emergency fund, or saving part of it.
- How about rethinking travel and vacations? Absolutely experience life, but is there a different way to do that which doesn’t break the bank?
I’m not mentioning camping to save money. No.
The listeners of The Scott Alan Turner show, you know I’m cheering you on to help you build the habits, lifestyle, and rock sold plan to have financial freedom. No matter your stage, your age, or your wage.
Because the economy is on fire, because wages are going up, because mortgage rates are down, now is the time to turn optimism to reality. Take the steps to turn optimism into security. Take the steps to turn donuts into cash. That doesn’t even make sense. But I think that will go up on Instagram.
Just having a plan should make you optimistic. And a plan – on paper, on a computer, on a napkin – that’s real. That can work. Following the plan makes it a reality.
So think about ways, big ways, small ways, sideways, to match your spending within your needs and wants. Spending less than you earn is a guaranteed way to build wealth that anyone can do. That’s the golden rule of personal finance and what you should be aiming for.
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