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One of my favorite methods of saving is binding and it sounds ridiculous like that so During the real estate bubble because they were using the equity in their home equity And now the money that they have put into their Mortgage all of those payments have they stacked up and paid the So have they took that money out and ended up going on the house again And then the house wasn’t even valued at the same price that they took the money out of So I’ll be up in trouble But What am I Favorite methods of Saving which I am just new to is At Homeownership and I read somewhere the if you’re going to buy I have home the Best You What’s the best way
To know Increase Your net worth days to buy a home because If you buy A $500,000 home pay it off Within No 15 to 30 be yours You know you are Now worth $500,000 Please Should we have an asset that other people Have a think about you know more mortgages is that it’s a really good way to get leverage because you can take one Full Power Open asset Before by only putting down about 20 He percent or if you use like somebody Government grants for loans and stuff you can put down zero present and they will Let you have kids For an asset It is worth hundreds of 1000s of dollars So that’s a real quick way to build wealth And I really don’t advocate taking money out of the house we’re using your equity and Unless you Know what you’re doing and speak to a financial advisor
but Happy rent for about 10 years at the same Place That was just money wasted And During my time while I was Reading A whole bunch of really statements here are you and why The authors that I was reading and I don’t Remember who Was it I suggested that if you’re going to live in any place for Long Longer than 10 years 10 years or longer They do Bye Real Estate issue By the homies you’re staying Because over that 10 year yours You would have put so much equity See you that house that we You got to move and you sell the house You get that money Did you put in you know minus Anything that was charged off to interest and and all of the fees that come with Buying a house.
He said if you’re going To live And I A house for less than 10 years it really doesn’t matter makes sense for you to buy it because By the time you get done panels Mortgage fees how inspections and all the Real Estate Agents and everything else you will Actually more than my We ended up underwater Losing money Want that deal bye I thought that that was a crazy thing to think about that you know If you want to live in a place 10 years they You might as well you know purchase a home and then sell because that is forced savings and That’s why home ownership was Part of the American Dream because when you have that mortgage which is actually debt But over time as you pay off debt more ditch angled less to the bank You Actually have them answer which can leverage to do other things with
really All the rest of that story to the house will have birth to the whole Mac As to the whole real estate fight enhance community but I thought it was really interesting bet you can start thinking Get out of your home As a force savings and That’s just something to be Hold on to another thing that people don’t They don’t think of retirement savings as savings and It’s weird Because earlier I meant This stock is Not saving It’s actually enough I spent the money Think about the Are you alright Ira Roth 401 ks four Free Bs is that the instruments or texting Clean not savings account but because they are Text advantage because the money that you put in You can possibly come from Your check before is text there are three types X dollars you can do
These instruments to one Lower your income You’re impoverishing yourself So that means that you pay a lower attachment if You are very close to it Tax bracket In You can actually use Beans tech Different instruments to bring down You’re 10 Support income and you can put them there inside of an account If you’re poor offers a match then Good day It doesn’t get any more Better than that that’s pretty much free money If your employer is matching the money you put in And so put in $5 employee puts your employer puts in five hours at Free money and then None of that was Text and it goes straight in there and assistir for 1020 30 years You’re ready to retire It’s still an investment For the stock market that you can actually buy some different type of investments or savings vehicles within these accounts.
But generally speaking, most people, most Americans who own stock right now, and the dynamic might change soon, but most Americans who own stock is through their 401k, or their retirement accounts, which is really, really awesome. Because a lot of people don’t think of their retirement as a source of savings. And so they actually retire. And then they realize, like, oh, man, I invested this money, but look how much I saved up. And that’s it, it’s crazy, but it works. five to nine savings plans can also be used to bring down your income to save for college, if you are planning to go to college and you are saving your money, you can put it into a five to nine College Savings Plan, which has mixed reviews on that I suggest you do your homework, but that is a savings vehicle.
Earlier, we touched on this whole bonds, and we also touched on, you know, state, and federal bonds and commercial bonds from companies. And then my favorite. My favorite is CDs, CDs, get a bad rap, I talked about this earlier, a couple of my Facebook videos and instagram videos, CDs are awesome. Because you can lock away your money, or even have 3d CDs for 30 days, 90 days. You know, that’s one month or three months or six months or even a year, you lock your money away, and a bank pays you interest. And when interest rates are high. These are generally high interest accounts where you actually earn more money on your CD, they do what your savings account right now things are a little bit sketchy.
But I still love CDs, because as a short term place to put money away, it’s very awesome in there is what’s called a bond ladder. And a lot of retirees used to use them when bonds were the thing where you get a bond. And your goal is to make sure that one matures right after the other. And so that you have this liquid stream of assets, because you timed the bond purchases, so that that one matures and cash out after the next and that’s a good way to save money. But you can actually do the same thing with a CD. And for long term saving or short term saving, if you get a 30 day CD, you can get 130 Day CD. And you can slowly work your way up to three, three months, CDs. And right then in there, you are guaranteed to have one CD maturing every month for the rest of the year.
And as long as you don’t use that money, you can roll it over. So that’s part of my goal. And yeah, so we now we’re back to Bibles. So my goal is to use the power of a CD ladder, which is very comparable to a bond ladder, look it up
to make sure that I always have some cash maturing and available so that will be more of a mid term amid savings. But it’s not exactly long term. It’s not as a short term. But out if I have money maturing every month, let’s just say CDs are $1,000 if I can put away $3,000 and get one CD in January, I bought another CD $4,000 In February, and then another CD and March they come April, the CD that I purchased in January is just now maturing and now I have money available and April to either spend or reinvest and it continues on like that because the February money will come available and March and I can decide to you know, reinvested that way.
So that’s a good way to take, you know, $3,000 or more because you can get CDs and even an odd amounts as long as you cover the minimum amount and keep it in there. CDs are awesome. You can always have somebody maturing and the best part about film is that they are liquid because you can you’re guaranteed Have your money within a month, if you do it as a ladder and the 90 day CD 39 days, CDs, you’re guaranteed to have money coming to you every month or coming available every month. And you can add to it. And who knows, you might have worked your way up to where maybe you already have money, maybe you do it with $5,000 each. And instead of $1,000 each month, you have 5000 in January 5000 in February $5,000 in March, and now you got $15,000 That is rolling and maturing every month,
you have $5,000 of debt. So that’s what I plan to do for one of my one of my long term saving solutions. And then the second part of my long term savings is to make sure that I have available stock to sell. And most of my stocks are long term stocks that I own. But I want to make sure that in the case of an emergency, I can liquidate all of my stocks, and I can just go to cash. And I can add that to let’s say the hypothetical 3000 or 4000, or, you know, however much money I have rolling over. And to those CDs. I can you know take that money and add it to that and have those come together. And total 1000 up sorry, $10,000. And like I said, your goal may be $3,000 or $1,000. It doesn’t matter what your goal is, it just met really matters is that you get into the habit of saving so that you can have some short term savings.
And get into the habit of keeping your debt low, so that you can move on to your long term savings. And you can rely on your credit if you are in a crunch. So that’s the end of this episode. I really hope you enjoyed it. I hope you learned something. If you have any questions or comments, feel free to leave us up on Instagram, Twitter, Facebook, we are everywhere. On Twitter, we are podcast pocket and on Instagram, your pocket change investments, Facebook pocket change investments. And I’m also on public that is my favorite investment tool and brokerage and social media platform. So link up don’t be afraid to ask your question. I am very friendly.
And if I can’t find your answer, I don’t point you to shout to the whole financial community, the whole creator community and the finance space because they have been super helpful in my journey. And I am not here for to fame or glory. I have no problem saying I don’t know. And finding your answer, but I also have no problem point to you too. So I’m just a guy. But I really really appreciate you for stopping in and listening. Thank you very much and have a good night.