how to getting your finances in order & start getting excited about money

hello sweetest potatoes when we think of money What feelings usually come up whether we have enough whether we don't have enough whether we have more than enough it just seems like life's daily demands as well as society's General avoidance of talking about money supersedes the amount of energy that would be needed for us to sit down take a proper look at our finances and figure out how to move forward so that's what we're doing today in the wise words of Rit when was the last time you got excited about money when was the last time you truly dreamed about what you wanted to do with your money when it comes to money it is not the most inspiring I do not feel inspired and I think this is how most of us feel all the information out there in the world just seems so so so overwhelming which is actually why I created this recet series because I was reading ramit's book I will teach you to be rich and I was also watching his Netflix special and it got me excited and inspired to reset my finances so I'm like if I'm going to reset my finances might as well reset for the whole year because we're at the end of the year ready anyway and in case you missed last week's video we're on week 2 of our 30-day potato reset Series where we'll be spending 15 minutes every day over the next few weeks to focus on four aspects of Our Lives what better way to hit reset and get a head start on something we've probably all been putting off quick shout out to rettin for sponsoring today's video if you're doing any Cyber Monday or holiday shopping do yourself a huge favor and save an additional 10 to 15% off via cash back on top of major tell's existing offers by downloading racket tin's free browser extension this isn't girl math this is actually money we're leaving on the table because racket tin's completely free to use you can sign up using the link in my description box and get a $40 sign up bonus after qualifying purchases more on this a little [Music] later how do you get excited about anything in life you follow away your heart goes and my heart has clearly been gravitating towards this guy named RIT as it pertains to finance so who is RIT he's a personal finance author who came highly recommended for my significant other the best way that I can describe him is a cool hilarious but very very very direct Indian dad who will not sugarcoat things and just tell you things as they are especially when it comes to finance when I was first introduced to his body of work everything is titled I will teach you to be rich everything he talks about is a rich life so at face value I instinctually was just like I don't want you to teach me to be rich because of all the connotations that the word Rich has or the lifestyle that it's been associated with but as soon as I started diving into what he actually writes about I was like I'm so glad I didn't judge this guy and just not follow through and not read any of his stuff because it is amazing the first and foremost thing we always talk about really is perspective and mindset being open to potentially changing that we need to want to spend the time to think about our money habits our money philosophies whether it is things that we chose for ourselves whether it is things that have been ingrained in US subconsciously so I'm going to read what was on his website about what it means to live a rich life a rich life is your ideal life in which your money relationship and Leisure Time work together beautifully that could be all of these things on the screen or it can be none of these things your rich life is yours it is not your parents not your friends not societies not your peers not mine it is yours it is a life that is full a life lived intentionally proactively and abundantly a rich life isn't all about money rather we see money as a tool for Designing enhancing and enjoying the life you're meant to live I really love this because I feel like this gives us something to look forward to rather than traditional fin Financial advice which is to budget and to cut spendings which are all things that I've shared about in the past too it's much more limiting and restricting whereas dreaming coming up defining your rich life is just it's like we're planning for the new year but instead of planning for the new year planning for our future as it pertains to finances which is beautiful here's my rich life I'll throw it on the screen even though I just put this down on paper it's been on my mind for some time which is why I've been prioritizing travel with family loved ones this year why I moved back to California to be closer to my parents and why I'm spending time and money decorating our place because I feel the most inspired in beautiful places we spent the majority of our time at home I want our home to also be very beautiful this is just an example of all the things that are important to me and the decisions I've made and the decisions I've taken to allow me to live more aligned with my quote unquote rich life for the purpose of structure Insanity I'm going to focus the rest of the days on what to do with our money once we get paid how we make money how we get paid can be a whole series on its own so in the meantime I'll leave a link to the video up here and in the description box on how I made money over time bit older but you can definitely check that out see you tomorrow the goal is simple decrease your debt increase your savings and Investments and allow yourself some guilt-free spending so this is going to be the blueprint for the upcoming days today is going to be all about credit cards so when money hits your bank account the very first thing you should do is to pay off your credit card credit cards are high interest debt this is just a rule of thund that I've lived my life since I got my very first credit card which is to never spend more than I have but if you already have credit card debt accumulated the thing to do is to not shy away from looking at that number figure out a way and a plan to pay it off as soon as you can credit card determines like a pretty big portion of your credit score and if you have a good credit score it can let you do a lot of other things like get better credit cards or get a better interest rate for bigger purchases like a car or a house even though some of these things may be very very far in the distance for you it's still always a good idea just like to be mindful and to be aware of what your credit score is so that you can build it up so that you can maintain it so here's a part where we can have a little more fun our rich life take a look at that think of the things that you value what which credit cards are worth getting this is also another bag of cat and there's many people on the internet who talk about these things much better than I ever can many many years ago when I was in college my mom helped me open a Chase Freedom account this was the credit card that I used throughout college for me to start building up my credit score after graduating I was able to open my own Chase Sapphire reserve and I use this as my personal card as well as my business card me starting my YouTube channel everything just kind of Blended together probably wasn't the best way of sorting out my finances but after a few years of turning this into a business I opened the amix Platinum business card as well as the chase Inc business I mostly signed up for them because I wanted to split my personal finances with my business finance they definitely have steeper annual fees however because I do use the travel credits because I do use the points it just it makes sense for my lifestyle it makes sense for my rich life so if you were to take a look at your current credit cards a few questions you can ask is do you value travel if so consider opening travel rewards cards if not a simpler cash back card is enough I know it can be stressful when you really think about it think to simplify and look for people look for blogs look for sources that you can trust when it comes to paying your credit cards on a monthly basis remit does recommend setting up auto payment so that you never get a late fee and then interest rates will never roll over however for for me just want to physically move the money myself so I know how much money is coming in and out I do like to still go in every month take a quick scan at my payments to make sure that there's no fraud that nothing crazy is happening within the past decade that I've been doing this I've only maybe gotten one or two late payments which brings us to the next point of when you do get a late fee penalty from the bank give them a call 10 out of 10 times they will wave that fee for you especially if you usually pay everything on time now we're getting to our increasing your saving and investment days when it comes to savings the first and foremost important thing we save money for is for a rainy day fund or an emergency fund basically preparing as best as we can for the unexpected just so that if some of these things do come up we are relatively prepared enough with this sum of money it is recommended that you keep it in a high interest checkings account the longest time I had my money in a very traditional Big 4 bank and it didn't really matter because interest rate were low anyway but now that interest rates are higher it's worth moving this money into a bank with a higher annual percentage yield if you put 10K in a more Traditional Bank you will get maybe a dollar if you put it in a bank that gives you 5 to 5.5% like wealth front which is what I'm using it will give you an additional 564 so this is a very visual example of working smarter and not harder with their existing money this was something that I've been putting off for the longest longest longest longest time but I just opened this Bank a few weeks ago my partner gave me a code to use and that bumps mine up by I think .5% which is why I use 5.5 I'll link it down below this isn't sponsored this also isn't affiliate but it is like a little referral bonus and with all this talk about Banks it's also important to pick a reputable Bank double check triple check just make sure wherever you're putting your money money it is it is a good place now that we got the more technical things out of the way we can refer back to our rich life take your time mhm pull it out yes look at your roach life look at the life you want to live figure out a few things that you want to save money for these are all the things that you can possibly save up for so how exactly do we save let's break it down first step is to clearly Define what it is that you're saving up for once you get very clear about it especially if it's something that takes longer for you to save to get get very very specific about why and then figure out how much money you would need to make this happen this is per your rich life not a conservative estimate and the third step is to come up with a plan for how long it'll take for you to be able to hit this number maybe it is 3 months maybe it's half a year maybe it is 1 year now that this is Crystal Clear the last thing to do is just to actually set aside money into your savings account for this thing that you're saving up for before we move on on to investing I'm just going to squish day three and day four together but feel free to take a break or just pause this video go get a drink of water or come back to it tomorrow if you're doing this actually day by day investing investing investing the best way to invest for normal folks like us is to invest in index funds instead of picking individual stocks to invest in you're investing in the stock market as a whole I probably should have said this much earlier but I'm not fincial adviser legally I'm not sure what I'm supposed to say in this disclaimer but yes take everything with the Warren Buffett famously challenged a hedge fund manager to see who'd make more money investing over 10 years and his contention was that including fees cost and expenses an S&P 500 Index Fund will outperform a handpicked portfolio of hedge funds over 10 years the BET pit two basic investing philosophies against each other passive and active investing so generally speaking even though the index funds and the General stock market will go up and down over many many many many years it will go up on an average of 7.5% this is why the saying goes time in Market is better than timing the market so how does one start investing the very first thing you do is to open a brokerage account it can be wealth from it could be Schwab I'm sure there's others out there too once you open it and get it approved I'm pretty sure it probably won't take too long you connect your primary checkings account pick a low fee Index Fund tracking the S&P 500 set up automated transfer again this will different for everyone even if you can only invest 5 10 20 time in the market is better than timing the market and the earlier you start and your money compounding over time the better this is something that I really truly wish I did when I was in college so this is how you invest 101 and this is what I'm going to do right now set up the automated transfer because that's one of the only things that I have to do left Welcome to the day five the previous days were all focused on setting oursel up for a rich life today we start living our rich life mhm in the words of RIT spend lavishly on the things you care about and cut ruthlessly on the things you don't so if you love your $5 lattes get your $5 lattes it's okay no one should tell you otherwise yes sure it builds up over time but if it brings you happiness do that we pick and choose our battles to figure out where we want to be able to allow ourselves to spend guilt free it could be bags it could be clothes it could be none of that it could be experiences it could be travel it could be whatever you want it to be oo getting really passionate my throat's getting really dry so that you can cut on the things that you don't really care about I think it's still very important to track our spendings track where we're spending our money and have a place where it kind of Aggregates everything together two of my very close friends when including my significant other he really is a positive influence when it comes to these things have highly recommended this app called co-pilot you can securely plug in all your different financial institutions from Banks to credit cards to investment portfolios to real estate whatever just everything can plug into this platform and they do a really good job of categorizing your spendings tracking your net worth as well as monitoring the performance of your Investments over time and I really love how thoughtfully it is designed and how easy it is to use you literally just plug in your Banks and you'll see everything that you see here I just think this is wonderful if you guys want to check it out then we prioritize your spendings based off of our rich life what do we want to spend our money on this is the beautiful thing when it comes to our rich life because you can think about and get excited about the things that you want to spend your money on and allow yourself to spend your money on because you have the peace of mind that you've done the work so that now with this extra sum of money you have the peace of mind to spend it on the things that you just want to spend it on life is meant to be lived if you have the money and if you have the means it's okay to live your life when you do spend money you can still be smart about whether you can get some money back or whether you can get a discount the app that I've gotten the most use out of to save over thousands and thousands of dollars is rettin my friend introduced me to rakon's browser extension back in 2016 and I haven't looked back since this fits perfectly with my rich life of doing the least amount of work but getting the most out of it the way that the browser extension works is that as soon as you add it to your I'm using Chrome right I added it to my Chrome extension whenever I go on a website this little box will pop up that says activate cash back all you have to do is click that and then you get cash back and during Cyber Monday and I'm sure over the holidays this number this percentage drastically goes up most of the time retailers are between like 1 to 2% but during holidays during sales it goes up to 15 to 20% cash back this is amazing so what exactly is rettin rettin is the largest cashback site with Partners over 3,500 biggest brands like Sephora Ulta Dyson Ugg targin all of these brands that you're seeing on screen to bring you cash back coupons and promo codes all for free you just click through the links found on rettin and then shop on the store's website like you normally would or use the browser extension as I mentioned if you haven't signed up for rettin yet you can use the link in my description box and get a $40 signup bonus when you make a qualifying purchase so track your spendings prioritize your spendings and save when you're actually spending if you are spending just to round out the rest of the days the first 5 days have been intense I feel like Finance in general is pretty intense I feel very tired just talking about all of these things so take the weekend off or take the next two days out to do whatever you want with the time that you do have in the next few days I really would recommend reading up on more things that you're curious about as it pertains to finance I would recommend watching more videos on YouTube listening to other people what they have to say theity they have to share if you follow your curiosity if you follow your heart it will lead you to places that you may even surprise yourself the Sun is setting and the way that it's reflecting off of this building onto my face is wonderful I love this room me the best thing that we can ever do for ourselves is to ask ourselves these questions and see how we can live as close of an Enlightenment as we can with our truest most authentic selves our for our Buddha nature Our God side and with that yeah hugs many many hugs woohoo woohoo I'll see you guys next week dreaming deeply very very deeply about our career see you soon bye