Participants: Cordell Thomas
Series Code: TITTB
Program Code: TITTB000033
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00:01 On Take It To The Bank,
00:02 you'll find ways to get out of debt. 00:09 Solve your credit card problems. 00:14 How to make and stick with the budget? 00:19 Simple ways to save. 00:24 Buying or selling a home 00:26 and many more financial matters on Take it to the Bank. 00:31 Hi. Welcome back to Take it to the Bank. 00:34 We are so glad that you are here 00:36 and there are so many things 00:37 that you've contacted me about and what you wanted to hear. 00:40 And, I think it's exciting that we're connecting 00:43 and finding out some of the things 00:45 that you are listening to and that God has helped us 00:47 to understand about our personal finances. 00:50 I have a Bible verse for you. 00:51 It's Matthew 5:16, 00:53 "Let your light so shine before men, 00:56 so that they can see your good works 00:58 and glorify the Father." 00:59 And I think that's one of the basic tenets 01:01 that I like to communicate to you. 01:03 Everything that you do, people are watching you, 01:05 wherever you live, in urban markets, 01:07 in rural markets, 01:08 you as a demographic 01:10 are someone that someone will see 01:13 and will basically make a decision about who you are. 01:18 And that's the gravity of all of this, 01:20 that what we do as examples for Christ will basically, 01:25 hopefully lead someone else, and one of the things 01:27 that are major is how we deal with our finances. 01:30 And no matter where you're at in your life, whatever you do, 01:34 you can always find a way to get to the next level. 01:38 And we've always talked, way back 01:40 on several of the other programs. 01:42 We've talked about what it takes 01:45 to begin a life of savings, 01:48 a life of developing assets, of investing, 01:52 and of course, there are other things 01:54 that we've talked about, such as 2010 rule, 01:57 you remember all of that about how much debt 01:59 you should be carrying on an annual 02:02 as well as monthly basis. 02:03 And then we said here about the rule of 72. 02:06 Many of these things we can go back and address 02:08 because it's nice to go back through different things 02:12 but the major importance here 02:15 is making certain that you have a budget. 02:18 On my website, you can find a free budget download 02:21 that you can take a look at in excel format. 02:23 And it basically gives you 02:25 every different possible part of a budget 02:29 that you could probably incur as an expense in your life. 02:32 Now, if you don't have a budget, 02:35 I would typically expect that you would be spending 02:37 every thing that you make on a monthly basis. 02:39 Why? 02:40 I got a question about how do you understand Cordell, 02:43 what do you understand about what we are going through. 02:45 I do. 02:46 I actually have been where you're at. 02:47 I believe that back in 1999, 02:52 I had a tax return 02:55 and that tax return had everything I made. 02:57 And it was interesting, that year 03:00 I didn't really save anything. 03:01 In fact, I probably spent more than I made. 03:03 I made a certain amount of money that year 03:06 and I spent a certain amount of money that year. 03:08 I actually have that tax return, 03:10 it's still there in my files, because I use it as evidence, 03:13 that if you don't budget 03:15 and if you wing it from your mind, 03:17 you're probably spending more than, 03:19 with credit card and all of that 03:21 as a part of how you can spend money. 03:25 You will find that you are typically spending more than 03:29 actually that you make and you don't save any money. 03:31 It's critical that you as individual 03:33 begin the process of assessing where you're at. 03:36 One of the things that my dad, 03:38 my late father used to tell me is, 03:40 "You will never know where you're going 03:41 unless you know where you're at." 03:43 A starting point is always a good thing. 03:45 Then he also says, 03:46 "There are many different routes 03:47 to the same destination." 03:49 So if it's about developing and accumulating assets, 03:54 investments, there are a variety of different ways 03:56 you can do to get there. 03:59 Many people seem to inherit moneys that come into them, 04:03 and that's how they accumulate wealth. 04:06 Others build wealth. 04:08 Now, one of the questions that I was asked is, 04:10 "I need to make a lot more money 04:12 if I'm going to accumulate wealth." 04:14 Well, I think one of the big things 04:16 that we need to be aware of 04:17 is not about what amount that you make, 04:21 it's about how you handle your money. 04:24 Look, if you're a millionaire 04:26 and you spend the million dollars, 04:29 are you at the same place that someone that makes 04:31 $60,000 a year and may save $20,000 of that? 04:35 I think you're further ahead of an individual 04:38 that's making or spending as much as they make 04:41 as opposed to assessing 04:42 how much money you have coming in 04:44 and budgeting that amount of money. 04:46 So as we review, know where you're at, 04:49 know where you want to go, develop a budget, 04:51 assess what you want to try to accomplish via that budget. 04:55 What is a... 04:57 or what are some of the hints 04:59 that they give you in the marketplace 05:01 about home-ownership? 05:02 There's always this 33% to 35% figure 05:05 about what you can spend on rent 05:08 and or mortgage based on what you bring in. 05:09 So if you make $6000 a month, 05:11 they'll say 33% of that is $2000. 05:13 So you should be spending $2000 on apartment rent 05:16 and or a mortgage. 05:18 Well, is that really a good number? 05:20 I don't know. 05:21 Live within your means 05:23 and you have a better idea of what that's about. 05:24 And it interests me all the time 05:26 that as I go and do lectures 05:28 and talk to people about developing a budget, 05:30 we give them a number and say, 05:32 "Hey, here's what we'll do today. 05:33 We're gonna talk for the next 10 minutes about a budget 05:36 and I'm going to give a number 05:37 that you make on a monthly basis. 05:39 Okay, so let's make $6000 a month." 05:41 Fine, we put that in as a line item. 05:44 But then as we start the process, 05:46 I say, "You know, I don't think $6000 05:48 is going to be enough for you. 05:49 So why don't you have a part time job 05:52 and add an additional $1000 a month in this. 05:55 You're gonna make $7000 a month. 05:57 And what's quite interesting is as we go through each line item 06:01 of that budget and get down to the bottom 06:04 we find that when we hit the bottom line, 06:07 that bottom line is in red 06:10 which means that we've spent more than the $7000 06:14 that we say we bring in, in income." 06:17 And that's always been the case. 06:20 It's quite interesting that we talk through the process 06:23 about why then do you need all of these elements. 06:27 And what I'd ask you to do is take this budget form home now 06:31 and assess what you're spending money on. 06:35 Revise it and see if you can bring those expense levels down 06:39 from $7000 down to approximately $4500 a month. 06:43 And it is one of the most difficult things that you hear 06:47 people talking about what do I do, 06:49 how do I get that funding down, 06:51 that expense level down to $4500 from the $7000 figure? 06:55 Cutting $2500 out of the budget 06:58 might be very difficult initially, 07:00 but now it tells you that we do have to 07:03 take some type of action if we expect, 07:06 expect to begin the process of saving. 07:09 So now we say, "Okay, start small. 07:11 What if you can cut out $500? 07:15 What if you can cut out an additional $750? 07:19 Or if you can cut out an additional $1000 of expense 07:22 from your initial budget?" 07:24 And you can based on that begin the process 07:28 of putting certain funds away 07:30 into an emergency savings account. 07:33 And start paying off some of that debt. 07:36 Now with that, 07:38 I'm going to take a little change of approach here. 07:42 And give you a small commercial. 07:43 One of the things that happens in our economy 07:48 as well as with our government 07:49 is they tell you that the way to spur economic growth 07:54 is by you as any middle class American 07:57 to spend and borrow more. 07:59 I was doing a lecture series and during that lecture series, 08:02 I was running through some information online 08:05 and it came up with this story that Americans, 08:09 middle class Americans were paying down debt 08:12 and saving more. 08:15 And at that meeting, I say, "Hey, guys, 08:17 did you see that story? 08:18 The story that actually tells us 08:20 you're doing the right thing. 08:21 You're actually paying down debt. 08:23 You're putting more money into savings 08:25 and they don't like that from a government perspective." 08:29 Why? 08:30 Because that's not getting you out to buy things 08:33 and getting other manufactures out, 08:35 buildings more things, 08:36 getting the manufacturing firms going again, 08:39 and that's how big business makes money, 08:42 economy starts growing, and people get more work, 08:44 because they have to hire people 08:46 to do that type of work in manufacturing. 08:48 But what was interesting is about two and a half weeks 08:51 following that, one of our individuals in government 08:55 came out from the federal standpoint and said, 08:59 "We need to spur economic growth. 09:02 So what we'd like to have you do, 09:04 Americans get out and spend more, borrow more, 09:08 because that's how we're going to spur 09:10 what we see as economic growth." 09:12 Do you think there is any rational behind 09:15 why they give you a tax incentive every March? 09:20 Is there any reason why they give you that $2500? 09:23 Why is it that they make sure that you get that 09:26 tax break of $2500? 09:28 It's because you as a demographic 09:30 have been studied 09:31 and they know your buying behaviors. 09:33 You know that you as an individual are a consumer, 09:37 so you take advantage of that label 09:39 and go on do what they tell you to do. 09:42 Consumerism is something that... 09:44 and if we have to understand what a consumer is, 09:46 you as an individual will go to a store 09:50 and you will buy something. 09:51 Whether it be a smart-phone, whether it be a tablet, 09:54 whether it be any range of different type of things, 09:58 you go in and buy them. 10:00 That means you're consuming an item that's produced out 10:04 in some manufacturing world by some major corporation. 10:08 And there is an interesting video 10:11 that's actually out there on YouTube 10:12 that actually talks about the ethics 10:16 that media can glamour to use to target you. 10:19 Did you realize that 40% of visits 10:23 to major theme parks and or to noisy amusement centers 10:28 for young people would never have happened 10:31 unless the child wasn't taught the nag factor? 10:35 That nag factor is very interesting 10:37 because they teach your child 10:39 to come to you several different times, 10:41 up to eight different times they ask you 10:44 for a product in a store. 10:45 I have been amazed that 10:48 even though we don't have satellite 10:50 or cable television in our home, 10:52 that our children still have picked up on that 10:55 same nag factor from friends 10:56 and from what they've observed in their surroundings. 10:59 And so when you go into store, 11:01 I have my young people coming to me 11:03 and they were artful sellers. 11:05 They know exactly how to sell what they need. 11:07 I need that dog. 11:10 And they hit you seven different times. 11:12 And they know then, 11:13 let me get mom and dad to talk about it. 11:16 I'll get out of the situation. 11:18 So then they ask your wife or your spouse 11:22 and the whole issue now becomes a conversation 11:25 and an argument between you and the spouse 11:28 as opposed to you and the child. 11:29 It's quite interesting, is it not? 11:30 And all of this, it's about you as an individual 11:33 spending the money that you believe is a tax incentive. 11:38 Let me give you some semantics here. 11:41 If you are told 11:44 that we're going to give you welfare, 11:46 what is the thing that comes to your mind? 11:48 And or if you are an individual 11:51 that hears that you're getting a tax incentive, 11:53 what comes to mind? 11:55 It's quite interesting, 11:57 it's based on the type of individual 11:59 that they are talking about. 12:01 So I was listening to a comedian on television 12:06 and he has a talk show. 12:08 On that talk show was one of the ex presidents. 12:11 And as it was in the background, 12:13 I was listening and I heard 12:15 one of the ex president say this, 12:17 "And we gave that corporation 12:19 in that geography of our country 12:21 $3 billion of your money. 12:24 Yes, we gave them a tax incentive 12:28 so that their organization could create more jobs." 12:34 Now, is there any difference between 12:36 you getting a tax incentive versus welfare? 12:41 No, there's no difference because 12:43 each one of us are getting government funds. 12:48 But the way they label it 12:50 targets the specific demographic. 12:52 So we see a welfare handout 12:55 as somebody that's in an under-served community 12:58 but you're still getting a tax incentive, are you not? 13:00 You're getting funds to consume things with. 13:05 And that's where you considered welfare as just a handout 13:08 because we're not expecting a return on that investment. 13:12 But if we talk about a tax incentive, 13:15 did you know that organization that received that $3 billion 13:19 handout welfare check from the government 13:21 actually turn around produced over the next 15 years, 13:25 approximately 700 new businesses, 13:27 computer based businesses 13:29 that have generated hundreds of billions of dollars 13:32 of revenue for the government. 13:33 And as you take a look at that specific type of context, 13:38 you begin to understand how they label you 13:41 as an individual 13:43 whether you consume and not save and or invest, 13:48 or whether you take the funds and make it work for you. 13:53 Now, there are many other things 13:54 that we can really talk about 13:55 but I'd like to get to something that 13:57 one of our callers actually asked about 14:00 in reference to scams and fraud. 14:04 And it's a very interesting topic 14:05 and I'd like to take you to that question 14:08 as it came up earlier. 14:12 He talked about the context of a fake check scam 14:16 that's going on out there. 14:18 And I was able to research that information. 14:20 We developed a friend over there, 14:22 ConsumerFed.org who gave us the approval 14:26 to use this video for educational purposes. 14:29 And I'd like to go to the video right now, if we could. 14:33 There was a day when the villain 14:35 was easy to spot. 14:36 These days are different. 14:41 One day while shuffling through bills, 14:43 John discovered something wonderful, 14:45 a check for $3000. 14:47 I just won the international lottery. 14:50 I don't remember entering the international lottery. 14:53 He calls the lottery agent to verify the news. 14:55 Hello? Hello. 14:56 The lottery agent confirms John's good fortune. 14:59 She tells John the process to claim his winnings is easy. 15:03 International law requires a fortune of the check 15:05 to be wired back to the office immediately 15:07 to pay the taxes on your winnings. 15:09 After that, the rest of the prize money 15:11 will be released to you. 15:13 John deposits the check 15:15 and then wires the money to the agent. 15:16 John is happy. 15:18 Too bad the lottery check wasn't real. 15:21 Unfortunately, the money John wired was real. 15:26 You work hard for your money. 15:27 Don't let a few minutes for the scammer separate you 15:29 from what's taken days, weeks, or even a life time to work. 15:33 Consumer Federation of America reminds you. 15:36 You can't win a lottery that you've never entered. 15:39 Winners pay taxes directly to the government. 15:42 And remember, there is no legitimate reason 15:45 why anyone who sends you money 15:46 would ask you to send money anywhere in return. 15:49 If that's the deal, it's a scam. 15:52 You can protect yourself from fraud. 15:54 Learn how at ConsumerFed.org/fakecheckscams. 16:03 Have you ever entered a lottery? 16:05 Have you ever gotten 16:06 one of those kind of things in the mail? 16:07 Chances are you have. 16:09 Chances are you probably been witness to 16:12 how this has affected other lives. 16:13 I have seen this happened. 16:16 I have heard of this happening. 16:17 I've had the questions asked of me. 16:19 I have asked other professionals 16:21 in the finance industry about how this thing works, 16:24 and typically it's just a game. 16:26 It's a game where people use you 16:28 to get access to your funds. 16:30 When you get a check in the mail, 16:31 one of the big items of our series is this. 16:36 Ask that one critical question 16:39 so that you can glorify your father in heaven. 16:40 Ask that one critical question, so you can save some funds 16:45 that you don't necessarily have to spend 16:47 on something you don't necessarily need. 16:49 And if it typically is too good to be true, it typically is. 16:53 How does the bank system work? 16:55 You take your check to your bank 16:56 and you give it to a teller. 16:58 Sometimes, the tellers may be young, they may be new. 17:00 They may not be able to keep up with the new technologies 17:04 being used in writing fraudulent check. 17:06 So what if it gets past the teller, 17:09 and they deposit it to your account? 17:11 Then that fraudulent, 17:13 the sender of that check has succeeded 17:15 because now it's in your account. 17:18 The money from the bank stamp, when they have to give you 17:21 access to some of your funds, so what happens? 17:24 You then go home feeling good that that $3000 check 17:28 has been deposited to your account 17:31 and you have access to approximately 10% of it. 17:33 So $300 is here. 17:35 What have they asked you to do? 17:36 To write a check back to them so that they can take care 17:39 of the processing of your lottery winnings. 17:42 Now many different red flags should start going up 17:45 when you start thinking about 17:47 that specific step in the process. 17:49 But that check now has to go through a clearing house, 17:52 your local bank's clearing house. 17:55 And that takes a couple of days and then they take that check 17:58 and physically send it to that other bank's clearing house 18:02 whether or not that bank exists or not. 18:04 Now, if the check is fraudulent and it goes to another bank 18:08 that supposedly that check was written out of, 18:11 and it's not real, then they will catch it 18:14 at that other bank's clearing house 18:16 before it is actually approved 18:18 and sent for clearing of the total funds. 18:21 So what happens then is they say, "No," that check, 18:25 which can be between ten days and two weeks after the fact, 18:30 they'll contact the bank and say, 18:31 "That check is not real." 18:32 And the money in that bank 18:34 that was deposited to the bank was not real. 18:36 So that money that you have started to spend, 18:40 the money you sent over to pay that person is real. 18:44 They have already cashed it and they are gone. 18:46 And then you have other expenditure 18:48 that you've probably made, 18:50 because now you are $3000 wealthier 18:53 and you go into a downward spiral. 18:57 Why? 18:58 Because you spent the money that doesn't exist. 19:00 And then the bank starts billing you bounced checks 19:03 and many other things that can happen 19:05 and then you are left responsible for the moneys 19:11 that you never really had. 19:14 Fraud happens and that check that you have deposited 19:18 now becomes your liability. 19:20 Now, I'm hopeful that I've addressed the question, 19:24 the question really about 19:25 how do these check fraud scams come about. 19:28 And they come about in variety of different ways 19:30 but the critical thing is 19:32 asking those critical questions. 19:34 And I put that in a specific type of context. 19:37 What would your critical question 19:39 have been in that scenario? 19:41 Because those critical questions change 19:43 as you deal with different situations. 19:46 For example, is this a legitimate lottery? 19:50 Did I enter a lottery? 19:52 And why would I have to pay for something 19:56 that I've already won? 19:58 These three questions 19:59 would probably apply in the situation. 20:01 And the questions, the critical questions change 20:04 as you vary the different kind of situations 20:06 that come or that can come your way. 20:09 What I do ask you to do in any type of situation 20:13 is look at the legitimacy of it. 20:15 Number two: I've always said is 20:18 you won't go and ask a brick layer 20:21 to give you an answer about investment products. 20:24 You would talk to someone that works in that area. 20:26 I have nothing against bricklayers, 20:28 I have nothing against masons, about builders. 20:30 What I do have is this, 20:31 that if I want to have my house built, 20:34 I'm going to talk to the mason, 20:35 I'm going to talk to the bricklayer, 20:37 I'm going to talk to someone that knows about building. 20:40 I'm not gonna talk to the finance expert. 20:42 It has to do with context. 20:44 So those questions that you ask have every thing to do 20:48 with that specific lottery 20:51 that they say that you have won. 20:53 So the first thing is lotteries. 20:57 What is a lottery? 20:58 What are your chances of winning a lottery? 21:00 Did you know that there are 15 things 21:03 more likely to happen to you than winning a lottery? 21:07 For example, in winning a lottery, 21:10 your chances of winning a lottery, 21:11 the odds of that are 176 million to one. 21:14 176 million to one. 21:17 So that's pretty slim chance of winning any type of lottery. 21:23 But did you know it's more likely 21:25 that you will be killed by a vending machine? 21:28 You have one in 112 million chance 21:31 that you'll be killed by a vending machine. 21:33 Yes, that does happen. 21:35 There are two deaths every year in the United States 21:38 by people getting crushed by vending machines. 21:41 So please snack responsibly. 21:45 The second one is 21:47 dying in an airline related terrorist attack. 21:49 There's a one in 25 million chance 21:52 that you'll die in one of those. 21:55 So why do you fly in a plane 21:58 or are you afraid to fly in a plane 21:59 but yet you buy those lottery tickets. 22:02 I've always asked those types of questions. 22:04 Those chances are there 22:06 and the questions that come to me is, 22:09 is it okay to enter lotteries? 22:11 Well, I just go back to the verse 22:13 "To glorify your Father which is in heaven." 22:15 And then there's that verse in Psalms 90:12. 22:18 It says, "Help us to number our days 22:20 so that we may gain wisdom." 22:22 Numbering our days means, 22:24 that if we are able to make the right decisions, 22:27 spend less than we make, 22:29 and put money away that we can help our Father in heaven 22:33 by doing certain things, 22:35 giving to certain ministries so that they can do the things 22:39 of reaching people for the kingdom. 22:41 And that's what we need to think about 22:43 as opposed to that lottery, entering that lottery. 22:47 'Cause there is a lot of money to be won, 22:49 but the chances of you winning it are slim to none. 22:53 Number three was, you could probably more likely to have 22:57 a set of identical quadruplets. 22:59 That's a one in 15 million chance of that happening. 23:03 You have a one in 10 million chance of becoming 23:06 president of the United States. 23:08 You have a one in 6.1 million chance of being killed 23:13 by a bee horn or wasp stings. 23:16 So, you know, be careful from that standpoint. 23:18 Did you know that you are more likely 23:21 to die by being left handed? 23:24 You have a one in 4.4 million chance. 23:27 It's a right handed world. 23:29 Apparently, a fair number of 23:31 left handed people die each year 23:34 from using right handed products incorrectly. 23:38 Did you know that? 23:39 How about your odds of becoming some type of movie star? 23:43 A one in 1.5 million chance. 23:45 How about dying in a plane crash? 23:47 A one in 1 million chance. 23:49 And the odds go on and on and on. 23:52 And your chances of winning a lottery now becomes minimized 23:56 because your priority of winning money 24:00 is not something that will ever make you happy. 24:04 I remember talking about some of the things 24:06 that science says will make you happy. 24:09 And I believe a lot of these 24:12 are mirrored what the Bible says. 24:14 And the number three item on that list 24:17 is put money last on your list. 24:21 Put it as a low priority. 24:27 There are lot of things we can talk about. 24:29 There are lot of things that you should be aware of 24:31 and as we have talked about this issue 24:33 called consumer awareness, buyer beware, 24:36 we need to make certain that we emphasize 24:40 the critical nature of making the right decision 24:44 because quite frankly, you are a target, 24:48 your demographic is a target, 24:50 your segment of the market is a target. 24:52 You as a middle class American, or an urban dweller, 24:57 or wherever you live, 24:58 you've been targeted based on your ethnicity, 25:01 your culture, your race, your socioeconomic standing, 25:05 every different element of who you are has been studied 25:09 by these individuals who lurk in the dark areas 25:12 and are targeting people for their funds. 25:18 So whether it be a scam, whether it be a lottery, 25:23 whether it be fraud, whether it be the fact 25:26 that you get a letter in the mail, 25:28 whether it be that you get something 25:31 that tells you that you've gained access 25:33 to a certain amount of wealth, 25:35 begin the process of thinking about 25:38 what type of lottery it is. 25:41 Think about whether or not you have entered a lottery. 25:45 Ask the right questions, talk to a professional, 25:48 and realize something. 25:51 Since we're all fixated on winning a lot of money, 25:54 people know that we're living paycheck to paycheck. 25:57 So they know that if they see that we could have possibly won 26:02 $3 million or $200,000, we're gonna jump on that. 26:06 And you know what we'll do? 26:07 We'll do whatever we can possibly do 26:09 to get access to that allotment of money. 26:13 You know, what I ask you to do is to take a step back 26:16 and realize that a lot things in a world 26:19 that God created now has gone into a difficult 26:24 and a negative direction 26:25 by all of the dark entities that are here. 26:27 You have to be aware of your surroundings 26:30 and be aware of placing the money issue 26:34 low on your priority list. 26:36 Savor those moments with your family. 26:38 Say thank you like you mean it. 26:40 Do things that are appropriate. 26:42 Don't compare yourselves with the neighbors. 26:46 Don't compare yourselves 26:48 with those that have a bigger car or a luxury car 26:52 because happiness is all about giving. 26:57 The study that was done on happiness is a movie 27:01 that was developed to tell us 27:03 that the happiest people in the world 27:06 are not the wealthiest people in the world. 27:08 The happiest people in the world 27:10 are those that give. 27:12 The happiest country in the world 27:14 is not the wealthiest country. 27:16 One of the saddest countries in the world 27:18 is one of the wealthiest countries 27:20 in the world. 27:22 So when we come down to happiness, 27:23 it comes down to your budgeting. 27:26 Understanding the context of why you are a person 27:31 that leads your family, 27:33 why it's important that you should understand 27:35 how much money comes in, goes out, 27:37 and understand that if you budget correctly, 27:40 you will have a better control 27:43 of how you can be of benefit for God, 27:46 benefit for your family, and benefit to yourself. 27:50 God bless you. 27:51 Take that to the bank and save. 27:53 God bless. |
Revised 2017-02-21